Viterra wilting

May 3rd, 2010 – Comment

I would suggest at this point that you might be best served taking a loss at this juncture and preserving capital so you can find a better opportunity.


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Lou Schizas is an equities analyst, investor, entrepreneur, professor and television and radio personality – and a true believer in the happiness-inspiring powers of capitalism.


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Viterra

 

Greetings Lou,

I’ve been in and out of Viterra for years eking out little profits by selling on upswings and buying on dips. I last got in at 9.40 and have watched it drift down slowly. I kind of like their place in the agricultural space and their global position with the ABB purchase. I’m thinking it may plunge to 7.00 if it starts drifting below 8.50….your thoughts? I must admit I’m a real keener when it comes to chart analysis, we all have our faults I guess.

Ron

 

Hi Ron,

Never apologize for using charts to help reduce risk and run profits! SAY IT LOUD AND SAY IT PROUD! I LOVE TECHNICAL ANALYSIS! Good to hear that you have found ways to make a few bucks on  Viterra Inc. (VT TSX) , formerly Saskatchewan Wheat Pool, which when I look at the charts tells me you have been fleet of foot!

vt3

The three year chart tells the tale of a stock that has been in a downtrend since October of 2009 and its recent drop breached support on the lower rail of the down channel. There is also a death cross that formed in March of 2010 that called the end of support at $9.50 and then at $9.25.

 

 

 

vt5

The six month chart provides a closer view of the selling that has come into VT and the struggle to hold support at $8.50. Below that its down to $8.00 and after that $7.00.

 

I would suggest at this point that you might be best served taking a loss at this juncture and preserving capital so you can find a better opportunity. Right now you are looking at a loss of about 9% and that might still be within your tolerance in terms of where you cut your losses. Finding new lows your money always always hurts.

 

Be advised that  according to Brooke Thackray the period of seasonal strength for the agricultural sector runs from August to December.

 

MAKE IT A HUGE MAY AND HAPPY CAPITALISM!

 

Categories: Agriculture
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